With the deep analysis of the above options, it is recommended that the business ought to choose the alternative 3 in order to maintain a competitive position in the long run. As the alternative 3 would allow the business to not only introduce new and innovative items in the market it would likewise minimize the high expenditures on R&D under alternative 2 and increase the earnings margins. It would enable the business to increase its share costs also, as investors want to invest more in business with substantial R&D costs and boost in the total worth of the business.
Action and implementation Strategy
Strategy can be carried out efficiently by developing certain short term in addition to long term strategies. These strategies might be as follows;
Short Term Plan (0-1 year)
• Under the short term strategy Global Thermostat need to carry out various activities to implement its NHW technique efficiently. These activities are as follows;.
• Get the audit of its brand name portfolio done, to examine the core selling brands, which create the majority of its revenue.
• Examine the current target market along with the marketplace section which is not consist of in the business's circle.
• Analyze the present financial data to determine the quantity that should be spent on the R&D and acquisitions.
• Analyze the prospective financiers and their nature, i.e. do they desire long term advantages (capital gain), or the want early profits (dividend). It would let the company to understand that just how much quantity must be spent on R&D.
Mid Term Plan (1-5 years)
• Obtain those organizations in which the business has potential experience to deal with. Obtain most beneficial companies with a strong dedication to health, to build the consumer's understandings in the best direction.
• Focus more on acquisitions than R&D to build the base in the consumer's mind about Global Thermostat values and vision and to avoid possible danger of sunk cost.
Long Term Plan (1-10 years)
• Acquire companies with health as well as taste factor, as the base for the Global Thermostat as a company producing healthy products has been built under midterm strategy and now the business might move towards taste factor too to grasp the customers, which focus more on taste instead of health.
• Be more aggressive towards R&D than the acquisitions, as it is the substantial time to develop brand-new items.
